A Tool for Evaluating Public Procurement in the Context of Life Cycle Costs

Daniel Macek ()
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Daniel Macek: Faculty of Civil engineering, CTU in Prague

International Journal of Economic Sciences, 2023, vol. 12, issue 1, 116-126

Abstract: The paper deals with the issue of selection procedures. The goal is to show how it is possible to incorporate a view of life cycle costs into the tender process, and not only deal with the aspect of investment costs. The paper is proposed by the Life Cycle Cost Inspector (LCCI). LCCI divides investment opportunities into individual components with their own operating characteristics and costs, allowing for a clear comparison of different investment alternatives. The tool considers acquisition costs, operating costs, and disposal costs over a specific period. LCCI also allows for reverse evaluation, where investment costs are modified based on efficiency. The tool's universality enables its use across various sectors, not just the construction industry. The author aims to shift public practice from tendering "on price" to "tendering on quality" by providing a simple methodology for comparing investment options based on the entire life cycle costs. The application is based on the Building Cost Information Service (BCIS) standard issued by the Royal Institution of Chartered Surveyors (RICS).

Keywords: Evaluation Tool; Life Cycle Costs; Tender (search for similar items in EconPapers)
JEL-codes: C51 L74 (search for similar items in EconPapers)
Date: 2023
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https://eurrec.org/RePec/aop/jijoes/0085ES.rdf117057?download=6

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Persistent link: https://EconPapers.repec.org/RePEc:aop:jijoes:v:12:y:2023:i:1:p:116-126

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